Employment and Social Development Canada (ESDC) is reporting that an employer in the farming sector was fined $75,000 and banned from the Temporary Foreign Worker (TFW) Program for five years for failing to provide required documentation to inspectors, being absent from a scheduled meeting with inspectors, and failing to demonstrate they were operating a legitimate business. This penalty was laid in the period spanning April 1 to September 30, 2024.

The Government of Canada monitors employer activity through a strict employer compliance regime. It has taken additional steps in recent years to combat program misuse, improve the quality and reach of inspections, and increase penalties for non-compliant employers.

Recent inspection data highlights the reach and impact of these improvements. Between April 1 and September 30, 2024, ESDC conducted 649 employer compliance inspections, of which 11 per cent were found to be non-compliant. Penalties for non-compliant employers have increased in comparison to the previous year. During this six-month period, ESDC issued $2.1 million in Administrative Monetary Penalties (AMP), more than double the amount in the same period in 2023. Inspections during this time resulted in 20 employers being banned from the TFW Program, a fivefold increase from the same time span last year.

Banned employers range from a seafood product preparation and packaging operation to an employer in janitorial maintenance.

To combat program misuse and increase worker protections, ESDC has implemented stricter guidelines for AMPs. In 2023, penalties increased from $15,000 to $45,000 and a five-year ban for employers who do not provide documents and who are found to be claiming a business that does not exist or exists illicitly. Beginning in fall 2024, the same penalties also apply to employers who refuse to meet with inspectors and who do not attend inspections. Additionally, employers who are not actively engaged in their business operations now face penalties of $15,000 for each negatively affected temporary foreign worker, rather than a total fine of $15,000 for non-compliance.

ESDC also significantly expanded its efforts to monitor and combat Labour Market Impact Assessment (LMIA) misuse, implementing the following key changes:

• -  more rigorous oversight in high-risk areas, when processing LMIAs and conducting inspections;
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• -  eliminating attestations from professional accountants or lawyers as proof of business legitimacy to help ensure job offers are genuine; and
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• -  increased use of Ministerial Instructions to suspend positive LMIAs in cases of suspected Program misuse or illicit activity, preventing employers from hiring additional workers.

Source:  Employment and Social Development Canada January 17, 2025 news release